In 2005 bankruptcy counseling became a requirement for individuals filing for bankruptcy. If you were unaware of this, then you better prepare yourself. The idea behind this is to have everyone go through credit counseling before they can even file for bankruptcy. When it comes to bankruptcy counseling there are two kinds. The first is pre filing counseling, and the other is post bankruptcy counseling.
The goal of both of this requirement is to try and help the debtor avoid having to file for bankruptcy. If we can help those who feel as though they need to file for bankruptcy, deal with their debt prior to filing, then we will have less people filing for bankruptcy. If we can teach people how to manage their finances, we may be able to prevent the need for so many people to file for bankruptcy.
In addition to this counseling there is another requirement. This requirement is a debtor education course. The point of this is to help them keep from ending up in this situation again. This course does last longer than the pre filing credit counseling. In this course the debtor is taught how to create a budget and manage their money.
There are some who do not believe that the counseling will do any good. This is because there are ways that the debtor can fulfill these requirements on the phone or online. They feel to get the real benefit of the counseling it needs to be done in person. They feel that if they are in person then the instructor can tell if they are paying attention and learning something, or just pretending to do so.
Other says that some counseling is better than nothing. Even if they do it over the phone or online they feel that they do absorb some of the information. They feel that even if they do not get the full benefit some of it will help them to make changes in their life and finances.
If you are thinking about filing bankruptcy get ready for come credit counseling. You have counseling requirements before and after filing for bankruptcy. This is something that you should be willing to do anyway. Chances are if you are thinking about filing for bankruptcy then you need help with and tips for your finances. It is okay to admit you need help, it is better than denying it and continuing to have these financial problems.
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